Tata Sons-DOCOMO arbitration case hits regulatory hurdle again

Tata Sons' plans of burying the hatchet with DOCOMO has hit a regulatory hurdle, with the Reserve Bank of India (RBI) rejecting its proposal of making a USD 1.17 billion payment to the Japanese telecom giant, reports CNBC-TV18.

Tata Sons and DOCOMO had entered into the arbitration in 2014 over the former’s failure to buyout DOCOMO's stake of 26 percent in their joint venture.

Following a two-year long arbitration process, the arbitral court earlier this month had granted USD 1.17 billion in favour of DOCOMO to be paid by Tata Sons. To enforce this arbitral award DOCOMO had argued their reputation has been severely hit and they suffered various losses on their investment due to this.

Tata Sons, however, clarified they are not averse to paying the arbitral amount but the RBI rules and guidelines restricts such payouts in case of international partners. Tata Sons has even agreed to pay through fixed deposit receipts at Delhi High Court to establish their bona-fide in the case.Watch video for more...